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GOOG Down With Markets
Stocks are falling on renewed concerns that Greece may not meet a looming deadline to complete a debt swap. Shares of GOOG are off more than 2%. Investors continue look for Android momentum in the smartphone and tablet markets worldwide; Motorola acquisition integration; regaining ground in China; resurgence of Google TV; and continued growth of YouTube; expansion of social network Google+; and progress in other newer initiatives (location-based services, mapping, gaming, daily deals, Google Wallet, Google Music, etc.). The stock trades at approximately 12.1x Enterprise Value / EBIT.What Google Needs Is A Stronger Ecosystem, Not A Tablet (GigaOM)
rumours of a Google Nexus tablet are making the rounds, but even if true, such a device alone won’t solve the primary problem Android tablet owners face. Perhaps if Google were to create a pure Google experience slate or a Nexus tablet at a compelling price, sales will rise, but that’s only going to carry Android tablets so far. To truly compete, Google needs to convince developers to build iOS and Android apps at the same time; or even better: think Android first when it comes to tablets.
Look Out, Google. Amazon Is Coming For You (Business Insider)
One big threat to Google’s core search business is the potential for Amazon to usurp Google’s position as the “start point” for many product searches and skim off the revenue that goes along with it; and the company is worried. Over the last decade, Amazon has been quietly expanding its web site to sell not only its own merchandise and the merchandise of third-party merchant partners, but to sell links and advertising to other third-party merchants that Amazon may have no other affiliation with. More importantly, for Amazon, the value of the advertising revenue is clear.
Google Gets Into The Online Reservations Business (PCWorld)
Google is dipping its toes in the airline reservation business. Google and partner Cape Air (a small regional carrier based in Hyannis, Mass.) announced the airline would be using an air reservation platform built by ITA Software (purchased by Google in July 2010). ITA’s platform for Cape Air was built from scratch using modular, scalable technologies, according to Jeremy Wertheimer, the company’s vice president for travel. And the system is built to scale to support airlines of all sizes.
The Fat Lady Might Be Singing For Google Music (BGR)
Google’s answer to iTunes and other popular digital music services may be in serious trouble. According to music industry insider Wayne Rosso, the service may be in deeper trouble than initially thought. “I’ve never seen anything like it,” an unnamed digital music executive told Rosso. “It’s astounding. It’s hard to believe that with an install base of over 200 million Android handsets they’re actually losing customers.” It has gotten to the point where record label executives are worried Google may discontinue the service.
EU To Decide On Future Of Google Antitrust Probe Next Month (Bloomberg)
European Union regulators must decide next month on the future of their antitrust probe into Google, according to the region’s competition commissioner, Joaquin Almunia. Investigators still must define their objections and clarify concerns over the world’s largest search engine. The EU is investigating claims Google discriminated against other services in its search results and stopped some websites from accepting rival ads.
Marsh & McLennan’s CFO Steps Down To Join Google (Bloomberg)
Good trade. Marsh & McLennan Cos., the second- largest insurance broker, said Vanessa Wittman is stepping down as chief financial officer to take a “senior job” at Google. No word as of yet what she will be doing at the search giant.
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